IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/81333.html
   My bibliography  Save this paper

Export Geographical Diversification and Economic Growth Among ASEAN Countries

Author

Listed:
  • Hinlo, Jennifer E.
  • Arranguez, Grace Ivy S.

Abstract

The study investigated the relationship of export geographical diversification and economic growth among ASEAN countries for the period 1980-2014. With a sample of 5 countries- Indonesia, Malaysia, Philippines, Singapore and Thailand- the study computed for the geographical diversification of countries using the Herfindahl index. Using time series analysis, with Vector Autoregressive (VAR) analysis and Granger causality tests, the relationship of the two variables among ASEAN countries were tested. The results showed a generally decreasing trend of HHI values of all 5 countries. Results of the analysis of the relationship showed a bidirectional relationship for Malaysia and a unidirectional relationship from export geographical diversification to economic growth in the case of Philippines. For countries Indonesia, Singapore and Thailand, results showed no causality which indicates that the variables are independent for these countries. Based on the results, the study recommendeds the followng: (1) formulation and implementation of appropriate strategies to improve export structure and improve economies for Malaysia and Philppines; and (2) diversification of export structure in terms of market destinations for Philippines to improve its economy.

Suggested Citation

  • Hinlo, Jennifer E. & Arranguez, Grace Ivy S., 2017. "Export Geographical Diversification and Economic Growth Among ASEAN Countries," MPRA Paper 81333, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81333
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/81333/1/MPRA_paper_81333.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jean-Claude Berthelémy & Sophie Chauvin, 2000. "Structural Changes in Asia and Growth Prospects After the Crisis," Working Papers 2000-09, CEPII research center.
    2. Rafael Romeu & Mr. Nelson Camanho da Costa Neto, 2011. "Did Export Diversification Soften the Impact of the Global Financial Crisis?," IMF Working Papers 2011/099, International Monetary Fund.
    3. Fabien Rondeau & Nolwenn Roudaut, 2014. "What Diversification of Trade Matters for Economic Growth of Developing Countries?," Economics Bulletin, AccessEcon, vol. 34(3), pages 1485-1497.
    4. shepherd, Ben, 2010. "Geographical Diversification of Developing Country Exports," World Development, Elsevier, vol. 38(9), pages 1217-1228, September.
    5. Feenstra, Robert & Kee, Hiau Looi, 2008. "Export variety and country productivity: Estimating the monopolistic competition model with endogenous productivity," Journal of International Economics, Elsevier, vol. 74(2), pages 500-518, March.
    6. Llanto, Gilberto M., 2012. "Philippine Productivity Dynamics in the Last Five Decades and Determinants of Total Factor Productivity," Discussion Papers DP 2012-11, Philippine Institute for Development Studies.
    7. Acemoglu, Daron & Zilibotti, Fabrizio, 1997. "Was Prometheus Unbound by Chance? Risk, Diversification, and Growth," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 709-751, August.
    8. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    9. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    10. Ali, Ridwan & Alwang, Jeffrey & Siegel, Paul B., 1991. "Is export diversification the best way to achieve export growth and stability? A look at three African countries," Policy Research Working Paper Series 729, The World Bank.
    11. Heiko Hesse, 2008. "Export Diversification and Economic Growth," World Bank Publications - Books, The World Bank Group, number 28040.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jinsoo Lee & Bok-Keun Yu, 2018. "The Effects of Export Diversification on Macroeconomic Stabilization : Evidence from Korea," Working Papers 2018-25, Economic Research Institute, Bank of Korea.
    2. Akbas, Yusuf Ekrem & Sancar, Canan, 2021. "The impact of export dynamics on trade balance in emerging and developed countries: An evaluation with middle income trap perspective," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 357-375.
    3. Ghialy Yap & Shrabani Saha & Nelson O Ndubisi & Saif S Alsowaidi & Ali S Saleh, 2023. "Can tourism market diversification mitigate the adverse effects of a blockade on tourism? Evidence from Qatar," Tourism Economics, , vol. 29(4), pages 880-905, June.
    4. Lee, Jinsoo & Yu, Bok-Keun, 2019. "The Effects of Export Diversification on Macroeconomic Stabilization: Evidence from Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 41(1), pages 1-14.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hattendorff, Christian, 2014. "Natural resources, export concentration and financial development," Discussion Papers 2014/34, Free University Berlin, School of Business & Economics.
    2. Xuefeng, Qian & Yaşar, Mahmut, 2016. "Export Market Diversification and Firm Productivity: Evidence from a Large Developing Country," World Development, Elsevier, vol. 82(C), pages 28-47.
    3. Dutt, Pushan & Mihov, Ilian & Van Zandt, Timothy, 2013. "The effect of WTO on the extensive and the intensive margins of trade," Journal of International Economics, Elsevier, vol. 91(2), pages 204-219.
    4. Iyoboyi, Martins, 2019. "Macroeconomic Analysis of Export Diversification in Nigeria," Empirical Economic Review, Department of Economics and Statistics, Dr Hassan Murad School of Management, University of Management and Technology, Lahore, vol. 2(1), pages 83-116.
    5. Lee, Jim, 2011. "Export specialization and economic growth around the world," Economic Systems, Elsevier, vol. 35(1), pages 45-63, March.
    6. Lee, Jinsoo & Yu, Bok-Keun, 2019. "The Effects of Export Diversification on Macroeconomic Stabilization: Evidence from Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 41(1), pages 1-14.
    7. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.
    8. Peñaranda Molina, Diego Andrés, 2021. "Determinantes de la diversificación de exportaciones en Sudamérica: un análisis con datos de panel," Documentos de trabajo 3/2021, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    9. Ben Hammouda, Hakim & Karingi, Stephen & Njuguna, Angelica & Sadni Jallab, Mustapha, 2006. "Diversification: towards a new paradigm for Africa’s development," MPRA Paper 13359, University Library of Munich, Germany.
    10. Vaseem Akram & Badri Narayan Rath, 2017. "Export Diversification and Sources of Growth in Emerging Market Economies," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(3), pages 1-13, September.
    11. Badri Narayan Rath & Vaseem Akram, 2017. "Export diversification and total factor productivity growth in case of South Asian region," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(1), pages 196-210, April.
    12. Young Ademola Obafemi, 2022. "Specialization Versus Diversification as Alternative Strategies for Sustainable Growth in Resource-Rich Developing Countries. Case of Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(3), pages 1-47, September.
    13. Hakim Ben Hammouda & Stephen Karingi & Angelica Njuguna & Mustapha Sadni Jallab, 2010. "Growth, productivity and diversification in Africa," Journal of Productivity Analysis, Springer, vol. 33(2), pages 125-146, April.
    14. Am Pinna & V. Licio, 2013. "The European firms' export activity to the neighbouring countries," Working Paper CRENoS 201321, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    15. Roberto Basile & Aleksandra Parteka & Rosanna Pittiglio, 2018. "Export diversification and economic development: A dynamic spatial data analysis," Review of International Economics, Wiley Blackwell, vol. 26(3), pages 634-650, August.
    16. Goya, Daniel, 2020. "The exchange rate and export variety: A cross-country analysis with long panel estimators," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 649-665.
    17. Aditya, Anwesha & Acharyya, Rajat, 2015. "Trade liberalization and export diversification," International Review of Economics & Finance, Elsevier, vol. 39(C), pages 390-410.
    18. Anna Maria Pinna & Rinaldo Brau & Vania Manuela Licio, 2016. "Broadening or jumping? An analysis of the first export market of European Union firms," Environment and Planning C, , vol. 34(4), pages 592-616, June.
    19. Wim Naudé & Maarten Bosker & Marianne Matthee, 2010. "Export Specialisation and Local Economic Growth," The World Economy, Wiley Blackwell, vol. 33(4), pages 552-572, April.
    20. Nizar, Muhammad Afdi, 2015. "Pola Diversifikasi Ekspor Produk Industri Manufaktur Indonesia [Diversification Patterns of Exports of Indonesian Manufacturing Industry Products]," MPRA Paper 98503, University Library of Munich, Germany.

    More about this item

    Keywords

    ASEAN; Export geographical Diversification; Herfindahl index;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:81333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.